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1. Company Snapshot

1.a. Company Description

Agora, Inc.provides Real-Time Engagement Platform-as-a-Service (RTE-PaaS) in the People's Republic of China, the United States, and internationally.The company RTE-PaaS offers developers with software tools to embed real-time video, voice, and messaging functionalities into applications.


Its products include video calling, voice calling, interactive live streaming, chat, signaling.Acceleration products; and extensions, which comprise interactive whiteboard, recording, analytics, and extensions marketplace products to enable developers to launch RTE in specific use cases and verticals.The company also provides Flexible Classroom that offers a low-code application Platform as a Service; and App Builder, no-code application platform.


Its real-time engagement products are delivered through its Software-Defined Real-Time Network, which is a virtual network overlay on top of the public internet.The company serves social, entertainment, gaming, education, enterprise solutions, e-commerce, financial services, healthcare, and IoT industries.Agora, Inc.


was incorporated in 2013 and is headquartered in Shanghai, the People's Republic of China.

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1.b. Last Insights on API

Agora's recent performance is driven by strong Q4 and FY 2024 financial results, with the company reporting solid revenue growth and profitability. The real-time engagement technology leader's senior management team has also demonstrated confidence in the company's future by voluntarily entering into a lock-up period until December 2025. Additionally, Agora's recent earnings call highlighted the company's continued innovation and expansion into new markets, further solidifying its position as a pioneer in real-time engagement technology.

1.c. Company Highlights

2. Agora's Q4 Earnings Beat Expectations with Strong Revenue Growth

Publication Date: Mar -09

📋 Highlights
  • GAAP Profitability Milestone:: Achieved fifth consecutive quarter and first full-year GAAP profitability since 2018.
  • Q4 Revenue Growth:: Generated $38.2 million in revenue, reflecting 10.7% YoY growth with a 12.9% net margin.
  • Conversational AI Expansion:: Usage doubled quarterly since March 2025, with AI revenue projected to reach 5% of ARR by 2026.
  • Gross Margin Pressure:: Q4 gross margin fell to 65.1%, down 1.5pp YoY, attributed to AI investment scaling costs.
  • 2026 Guidance:: Anticipates $36–$37 million Q1 revenue (8.1–11.1% YoY growth) and higher net income in 2026 vs. 2025.

Revenue and Profitability

Conversational AI Engine Adoption

The conversational AI engine product has seen rapid adoption, with usage doubling each quarter since its launch in March 2025. The company is expected to drive revenue growth and advance conversational AI innovation in 2026. According to Jingbo Wang, conversational AI products have great margin potential, with an expected gross margin similar to or higher than current core RTE products.

Financial Outlook

Agora expects continued growth in 2026, with total revenues projected to increase. The company's guidance suggests a steady improvement in profitability, driven by the adoption of its conversational AI technology. The company's valuation multiples, including a P/E ratio of 40.73, indicate a premium valuation. However, this is justified by the company's growth prospects and improving profitability.

Valuation Metrics

The company's P/S ratio stands at 2.82, while the EV/EBITDA ratio is around 39. The ROE is 1.68%, and the ROIC is -1.47%. The Net Debt/EBITDA ratio is 0.65, indicating a manageable debt burden. The valuation multiples suggest that the market is pricing in the company's growth potential, but also reflect the challenges associated with the conversational AI technology.

Growth Prospects

The growth trajectory for AI toys and customer service is expected to be gradual, with no single turning point, but rather solving use cases and penetrating into more verticals. The cost of models is coming down steadily, and it won't be a blocking factor. Analysts estimate next year's revenue growth at 12.3%, driven by the adoption of Agora's conversational AI technology.

3. NewsRoom

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Is Agora (API) Stock Outpacing Its Business Services Peers This Year?

Mar -04

Source: zacks.com

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New Strong Buy Stocks for March 3rd

Mar -03

Source: zacks.com

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Agora, Inc. (API) Q4 2025 Earnings Call Transcript

Mar -03

Source: seekingalpha.com

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Agora, Inc. Reports Fourth Quarter and Fiscal Year 2025 Financial Results

Mar -02

Source: globenewswire.com

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Agora Data and Figure Technologies Announce Partnership to Launch First Blockchain-Based Auto Loan Platform for Real-World Assets

Feb -26

Source: globenewswire.com

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Figure Announces Strategic Partnership with Agora Data to Bring AI-Driven Auto Finance to Figure Connect Marketplace

Feb -26

Source: globenewswire.com

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Agora: How The Company Is Solving The AI Voice Latency Problem

Feb -25

Source: seekingalpha.com

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Is Agora (API) Outperforming Other Business Services Stocks This Year?

Feb -16

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.52%)

6. Segments

Real-time Engagement Service

Expected Growth: 8.5%

Agora's Real-time Engagement Service growth is driven by increasing demand for interactive live streaming, rising adoption of virtual events, and growing need for real-time communication in industries such as education, healthcare, and social media. Additionally, the service's scalability, low latency, and high-quality video experience contribute to its rapid growth.

Other

Expected Growth: 9.5%

Agora's 9.5% growth in 'Other' segment is driven by increasing demand for its real-time engagement platform, expansion into new markets, and growing adoption of its live streaming and interactive broadcasting solutions. Additionally, strategic partnerships and investments in emerging technologies such as AR/VR and 5G are contributing to the segment's growth.

7. Detailed Products

Agora Video Platform

A cloud-based video conferencing platform that enables real-time communication and collaboration

Agora Live Streaming

A scalable and reliable live streaming solution for broadcasting live video content

Agora Real-time Engagement Platform

A platform that enables real-time engagement and interaction between users, such as live polling and Q&A

Agora SDKs and APIs

Software development kits and application programming interfaces for building custom video conferencing and live streaming applications

Agora Analytics

A data analytics platform that provides insights and metrics for video conferencing and live streaming applications

8. Agora, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Agora, Inc. operates in a niche market with limited substitutes, but there are some alternatives available to customers.

Bargaining Power Of Customers

Agora, Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Agora, Inc. relies on a few key suppliers, but it has some flexibility to switch to alternative suppliers if needed.

Threat Of New Entrants

The market in which Agora, Inc. operates is attractive, and there are low barriers to entry, making it easier for new entrants to join the market.

Intensity Of Rivalry

The market in which Agora, Inc. operates is highly competitive, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.45%
Debt Cost 3.95%
Equity Weight 97.55%
Equity Cost 4.20%
WACC 4.19%
Leverage 2.51%

11. Quality Control: Agora, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
OpenText

A-Score: 6.3/10

Value: 5.3

Growth: 5.4

Quality: 5.8

Yield: 6.0

Momentum: 7.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Karooooo

A-Score: 6.3/10

Value: 1.7

Growth: 7.3

Quality: 8.4

Yield: 5.8

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Agora

A-Score: 4.5/10

Value: 8.2

Growth: 3.3

Quality: 5.6

Yield: 0.0

Momentum: 3.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Agilysys

A-Score: 3.8/10

Value: 0.0

Growth: 7.9

Quality: 7.5

Yield: 0.0

Momentum: 4.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Bitdeer

A-Score: 3.6/10

Value: 6.7

Growth: 2.4

Quality: 3.9

Yield: 0.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
AMTD Digital

A-Score: 3.1/10

Value: 1.9

Growth: 3.2

Quality: 6.8

Yield: 0.0

Momentum: 3.0

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.39$

Current Price

4.39$

Potential

-0.00%

Expected Cash-Flows